Nine-day Bitcoin ETF inflow streak ends as cryptocurrency drops beneath $77K threshold
A nine-day streak of capital inflows into US spot Bitcoin ETFs came to an abrupt halt with $263 million in withdrawals as the cryptocurrency struggled to break back above the $80,000 mark.
Spot Bitcoin exchange-traded funds listed in the United States registered their first instance of net capital withdrawals across nine trading sessions as the price of BTC declined under the $77,000 threshold on Monday.
A total of $263 million in net outflows were recorded across Bitcoin ETFs on Monday, representing the initial withdrawal event since the middle of April, based on data compiled by SoSoValue.
These withdrawals emerged following a period during which spot ETFs attracted $2.1 billion worth of inflows beginning April 13, while BTC appreciated approximately 10% throughout this timeframe, data from CoinGecko indicates.
In conjunction with Bitcoin's upward movement, the Crypto Fear & Greed Sentiment Index transitioned into "Neutral" territory on Monday for the first occasion in a three-month span, registering a reading of 47. The index subsequently reverted to "Fear" status on Tuesday, however, as BTC was unable to sustain its upward momentum beyond the $80,000 level.
Fidelity's Bitcoin ETF leads outflows at $150 million
The bulk of the withdrawals recorded on Monday originated from the Fidelity Wise Origin Bitcoin Fund (FBTC), which experienced $150 million in capital outflows, data from Farside reveals.
The Grayscale Bitcoin Trust ETF (GBTC) and the ARK 21Shares Bitcoin ETF (ARKB) came next with approximately $47 million and $43 million in outflows, respectively.
BlackRock's iShares Bitcoin Trust ETF (IBIT) and the Morgan Stanley Bitcoin Trust ETF (MSBT) both showed neutral flow activity following consecutive days of positive inflows.
The bearish sentiment was not confined to Bitcoin products, as spot Ether ETFs also registered $50.5 million in withdrawals on Monday. Meanwhile, XRP and Solana ETFs reported no inflow activity whatsoever.
Bitcoin institutional demand outpaces mining supply
The surge in Bitcoin's price throughout April occurred as demand from institutional investors significantly exceeded the supply produced by miners.
Michael Saylor's Strategy has independently acquired 56,235 BTC during April to date, while worldwide ETFs have collectively added another 34,552 BTC on their clients' behalf during this identical timeframe.
When compared against the estimated 11,829 BTC that have been mined thus far in the current month, the disparity becomes evident, according to information from HODL15Capital.
CryptoQuant analyst XWIN Japan suggested that Bitcoin's pronounced price drop throughout recent days was most likely not the result of spot market supply-demand imbalances, but rather stemmed from a "classic liquidity event" initiated by forced liquidations of leveraged positions held by bulls.
In prior analysis, CryptoQuant indicated that a failure to break through the $80,000 threshold would confirm the presence of overhead supply resistance at that price point, which could potentially prolong the downturn for both ETF participants and short-term whale investors.